Homes in New Hope, Bucks County | Screenshot via Google Street View
The Bucks County real estate scene has been doing pretty well for itself all things considered. According to the latest housing report from Coldwell Banker Hearthside, REALTORS, the Philadelphia suburb has been one of the few markets to see an increase in homes pending sale, contrary to the national averages, which saw drops in August.
The third quarter report, which used TREND MLS data between July through September 2015 to gather the findings, show a 19.5 percent spike in homes going under contract or pending sale in July; while August saw an 11.8 percent raise; and September, a 6.0 increase, year over year.
To give a clearer picture, the Northeast as a whole saw a 5.6 fall in contract signings during the month of August, according to the National Association of Realtors’s Pending Home Sales Index. In spite of this mini August slump, NAR says “they remained at a healthy level of activity.”
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Noticed that home prices in Philly are sky-high? You’re not alone. In fact, Philly is the 7th most overvalued real estate market in the United States, according to a new study by MarketWatch and Corelogic.
Philly real estate prices now sit at 14.2 percent above sustainable levels (measured by home affordability based on the per capita income levels in the area). With the median home price in the Philadelphia metro region sitting at $219,600 (according to Bankrate.com), the MarketWatch study says home prices are up 16.7 percent since early 2014. That gives Philadelphia the dubious distinction of having the fastest home-price appreciation of any town on the top-10 list. Read more »
This just in from the Department of Misconception Debunking: student loan debt in and of itself does not, we repeat, does not prevent young would-be homebuyers from purchasing a house. Of course, you try telling that to a money-strapped millennial frantically searching for a job that’ll help them pay off their loans quicker, let alone a house. Go on. We dare you.
Obviously, we’ve wholly accepted the idea that massive student loan debt is one of the major factors contributing to a still laggy housing market. But as we’ve just said, this is not necessarily the case. According to a new report from Zillow, it’s only certain kinds of student loan debt situations that hold people back from buying. In some cases, it really just delays the process. To be sure, the shades of grey are somewhat distinct, plus there are other life variables to consider. Here’s what Zillow Chief Economist Dr. Svenja Gudell says about it in a press release:
“Student debt isn’t the evil-doer it’s made out to be, at least not when it comes to homeownership. As long as students stay in school and get a degree, student debt doesn’t deter them from homeownership, although it is possible that student debt could delay homeownership. People in their 20s and 30s are renting longer because they’re delaying marriage, paying a lot in rent, and struggling to qualify for a mortgage when they finally find an affordable home. Add to that list that they are paying off student debt.”
And with that, we present to you what homeownership odds are like as a result of student debt…
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We told you on Friday about the shaky confidence people have in the house-buying market. You know, how homeowners are feeling good about the current market, but wary of the one to come; while renters are a little more optimistic. Well, today we’re zeroing in on a segment of the population likely to fall into the latter group: millennials.
As we mentioned in our last post, the number of young Philadelphia renters who’d said earlier this year that they would be down for buying a house within a year increased by 23 percent by the time July came around. It’s a timely coincidence, then, that we’ve gotten hold of a report by Coldwell Banker Hearthside, REALTORS that took a look at what millennials, “the largest group of recent home buyers nationally,” are looking for. Here’s what they found:
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How are you feeling about the future market, Philly? Mixed-emotions maybe? We’re about to find out, as Zillow has just released their Housing Confidence Index report, which shows just how select metro areas feel about their homes and home-buying expectations.
In national data gathered from surveys taken by 10,000 renters and homeowners in January and July, Zillow found that 18 percent of Philadelphia renters in July said they were hoping to buy within a year, a number up from the 8 percent in January who’d said they planned on doing this. Zillow attributes the hike in the home-buying spirit to a slow-up in home value growth:
Home value growth has slowed in almost all housing markets this year, giving homebuyers some breathing room. In those markets with marked slowdowns, many more buyers are looking to buy their first home.
To be sure, the January crowd were in the midst of a 3.1 percent annual rise in home values, while the July group was seeing Philly home values flattening out.
What’s more, a good amount of these would-be homebuyers are millennials – i.e. ladies and gents between ages 18 and 34. According to Zillow’s report, these young Philadelphia renters who answered with the home-buying positive in January increased by 23 percent in July.
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Confession time: I’ve done a horrible job of keeping my home ready for Open House days.
That’s not to say it hasn’t been viewed at its best, but there’s simply no excuse for the few times it has left potential buyers wondering what kind of uncivilized people live there. I like to blame these mortifying instances on a fateful combination of the house being too big and too easily cluttered (which is why I want a trinity), coupled with impromptu visits by selling agents who opt to reach out a few hours before stopping by. (I kid you not, twice they’ve shown up an hour before the appointed time!)
Really, though, we should have the house ready to go at any time of the day. Thankfully, JustListed came across a list I have in good mind to follow to a tee: every one of these points will help you keep your house clean for unexpected showings. Whew.
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Know any millennials still on the rent bandwagon and with little to no aspiration to buy a house any time soon? It would be surprising if you don’t. According to a new Zillow report, first-time homebuyers tend to rent for an average of six years before signing off on a mortgage and are likely to be older, single, and spending a larger portion of their income compared to first-timers in the 1970 and 80s.
Indeed, if you want to get number-specific, first-time homebuyers from the 1970s rented for an average of 2.6 years, almost three times less than they do now. Moreover, they bought homes for about 1.7 times their income, while their millennial counterparts go for houses that cost 2.6 times their annual income. Age-wise, the 1970s and 80s saw its first-timers at 29 and 30 years old; today, the average first-time homebuyer is 33.
So, what exactly is behind this postponement by today’s young grown-ups? Dr. Svenja Gudell, Zillow’s chief economist, attributes it to a general slowing down in life milestones: “Millennials are delaying all kinds of major life decisions, like getting married and having kids, so it makes sense that they would also delay buying a home,” she says.
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It’s the middle of the summer and chances are good that you might be looking for a new place to live. We have a map that is going to be quite handy for you when it comes to figuring out that delicate balance of where you want to live, and then what you can actually afford.
Rental site Zumper recently compiled a list of the median 1-bedroom monthly rental rates for each pocket of the city. It’s all boiled down into this handy color-coded map that will give you an idea of where the action is and how much it’s going to cost you.
Here is the map
On the heels of a BHHS HomExpert report that saw an increase in Philadelphia home sales within the first six months of the year comes a new set of findings, this time from one of Philly’s surrounding counties: Coldwell Banker Hearthside, REALTORS have released their Market Research from TREND MLS Data in Bucks County.
The takeaways? For one thing, Bucks has seen a 3.8 percent hike in its inventory unit levels, meaning that compared to June of last year, this past June saw 169 more homes on sale. CBH REALTORS President Jaime Mancuso attributes this rise to a boost in property sales, according to a press release – emphasis ours:
“Based on the trend lines we’ve seen over the past year, we believe buyers have more choices because of the increased inventory provided by inspired sellers, who have seen that homes on the market are moving quickly in Bucks County. However, unlike what we saw in 2006 and 2007, the market remains healthy because there have not been inflated price increases.”
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There’s been a lot of talk recently about the state of the real estate market in Philadelphia. We know that home sales are up across the board in the Second Quarter (good news), but overall, how does Philly stack up to other cities when it comes to the all-important first time home buyer?
A new report from personal finance website WalletHub shows Philly sits smack dab in the middle of the pack at number 31 of a list of 62 “large cities” (over 300,000 people), clustered with a group that includes New Orleans (29), Minneapolis (30), San Antonio (32) and San Diego (33). For what it’s worth, Pittsburgh, with its population around 305,000 people, is ranked 8th on the list of large cities
However, for those first time home buyers looking to live in one of the most populous cities in the the United States, Philly is among the best. Only Houston (15) ranks higher on the list.
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